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IPFS News Link • Economy - Economics USA

Peter Schiff: We Don't Get Any Government For Free

•, by Tyler Durden

Everybody in America is going to be impoverished to a degree by these failed policies."

Peter recently appeared on the Chris Salcedo Show on NewsMax to talk more about government spending, inflation, and the weakening dollar.

The US government has spent trillions of dollars for coronavirus relief, running up massive budget deficits. Peter opened the interview by reminding viewers that every dollar spent by the US government has to be paid for.

The most expensive way to pay for government spending is through inflation – the printing of money, which unfortunately is how all the new government spending is being paid for now. Because we don't get any government for free. Whenever the government spends money, it is taking resources out of the private sector."

When the government funds its programs through taxation, it literally takes people's money. But when it funds its activities through printing money it more subtly takes their purchasing power.

And that's exactly what they're doing. This is a massive inflation tax, and the American public, particularly the middle class and the working poor, are going to be hit exceptionally hard by the cost of all these deficits and all this stimulus."